The Reserve Bank of India (RBI) has now made it even easier to transfer money through Unified Payment Interface Wallet i.e. UPI Wallet. Now customers will be able to access their wallet through third party apps also. Meaning, you will be able to transfer funds to any UPI app from the wallet present on any app.
The Reserve Bank of India has issued a circular allowing payment/transfer through third party UPI in verified wallets. For this, it will be mandatory for those having PPI i.e. prepaid payment instruments to get KYC done. After this decision of the Reserve Bank, banks or non-banks will be able to issue their PPI wallet.
Steps taken to ease digital payments The purpose of this green signal from the Reserve Bank is to ease the process of digital payment. With this, payment through UPI can be accepted on the PPI wallet and money can also be sent on the UPI platform.
According to RBI, at present, UPI transactions related to a bank account are done through the bank's UPI app or third party UPI, but to do UPI transaction through digital wallet, the transaction has to be done through the same app on which the number is registered.
Understand prepaid payment instruments like this You currently transact money through apps like Google Pay, Fone Pay or Amazon Pay, but this is possible only when these digital payment wallets are linked to a bank account. Now according to the new rules of RBI, you will be able to make money transactions or payments even through such digital payment wallets, which are not linked to any bank account.
These will be third party apps i.e. prepaid instruments. That is, a digital wallet in which money has to be deposited first through a bank account, UPI or cash. Then you will be able to pay the same amount.
Like you use gift card, metro rail card etc. These are all PPI wallets. The money deposited in it through cash or transfer from bank account can be used only for payment. But after the new order of the Reserve Bank or after getting their KYC done, money can also be transferred through these apps on Google Pay, Phone Pay etc.
UPI is operated by NCPI
RTGS and NEFT payment system in India is operated by RBI. Systems like IMPS, RuPay, UPI are operated by National Payment Corporation of India (NPCI). The government had mandated a zero-charge framework for UPI transactions from January 1, 2020.
How does UPI work?
For UPI service you have to create a virtual payment address. After this it will have to be linked to the bank account. After this there is no need to remember your bank account number, bank name or IFSC code etc. The payment provider simply processes the payment request according to your mobile number.
If you have his UPI ID (e-mail ID, mobile number or Aadhaar number) then you can easily send money through your smartphone. Not only money but also there will be no need for net banking, credit or debit card for utility bill payment, online shopping, shopping etc. You can do all these things through the Unified Payment Interface System.
Also read this news related to UPI
Now tax payment up to ₹ 5 lakh will be done through UPI: Users will be able to pay up to ₹ 5 lakh in a day even in hospitals and educational institutions.
Indian taxpayers will now be able to pay tax up to Rs 5 lakh through UPI. Till now this limit was Rs 1 lakh. National Payment Corporation of India (NPCI) has started this facility in Unified Payments Interface (UPI) from September 16. The government had issued a circular for this on August 24.
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